Real Estate Investing Glossary
Net operating income
Net operating income, or NOI, is a property's rental income after operating expenses, before loan payments and income taxes.
Net operating income, or NOI, is a property's rental income after operating expenses, before loan payments and income taxes. It shows what the property itself earns.
Why it matters to a Las Vegas investor
NOI separates how the rental performs from how it was financed, which makes it useful for comparing Las Vegas properties on equal terms. It depends on sound estimates of vacancy and expenses.
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Related terms
Questions about Net operating income
Does NOI include the mortgage payment?
No. Loan payments are left out so the figure describes the property alone.
Is NOI the same as cash flow?
No. Cash flow also subtracts loan payments.